Running a construction excavating company involves so much more than operating the heavy equipment. You must learn estimation, the proper way of hiring and firing employees and all about regulatory compliance in your state. You must keep the business healthy financially by constantly finding new projects and not overspending. Fight the tendency to overspend on heavy equipment. Hire key employees for help in areas where your skills are weakest--especially if job estimation is your weak area.

1. Focus on improving your own ability of making right decisions in every area of your excavating business. Basic business courses at college would be helpful in addition to your on-the-job excavation experience. You should be the most qualified person in the organization.

2. Consult your original business plan. If it still represents your business goals, recommit to follow your plan. If not, contact score.org or your local Small Business Administration office for free assistance in pulling together a revised, more viable business plan that addresses today's challenges. You may need to revise what types of construction excavation projects you will pursue and how you will go about winning those jobs, strategically outlining a marketing plan.

3. Develop a construction safety management plan with employees if OSHA inspections of your work site are possible. Employees embrace the plan more readily if involved in its creation. If you run your business with a hands-off approach to the work site, be sure your crew leaders or supervisors manage the workplace as you would like to see it done.

4. Handle payroll in the most expeditious way possible if you hire employees. This can be done manually, by financial software or by a payroll service. Each has its advantages and disadvantages. Take the time to choose the best solution for your situation.

5. Find resources for supplying your equipment needs--heavy equipment, a truck or dump truck and trailer. These can be upgraded from rentals to owned property when the time is right. There is no need to purchase equipment until you have steady work. Find equipment rental sources or equipment and dump truck owners who rent their equipment. When you buy, choose a versatile piece of equipment that can do more than one task, such as digging, excavating and loading jobs.

6. Keep your licensing, bonding, vehicle and liability insurance current at all times. Meet with your insurance agent periodically to work out the bonding and other insurance details appropriate for a construction excavating company.

Things Needed

Business plan

Tip

Consider renting excavation equipment, dump trucks and trailers by the day or renting them with an option to buy before you purchase your own equipment.

Warning

Before investing in heavy equipment and dump trucks, know how much business you would have to bill each month to break even. Only then do you begin to make a profit.

About the Author

Malinda Zellman has instructed computer, ESL and GED classes. She is a retired homeschooler and school librarian. She is contributing author for two books, "Games" and "Crafts," by Group Publishing. She has written for print magazines and websites. She holds two BA degrees, business administration and economics, from Rollins College.